House Study Bill 515 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF INSPECTIONS AND APPEALS BILL) A BILL FOR An Act relating to transfer of assets provisions under the 1 medical assistance program. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5374DP (5) 83 pf/nh

S.F. _____ H.F. _____ Section 1. Section 249F.1, subsection 2, paragraph a, Code 1 2009, is amended to read as follows: 2 a. “Transfer of assets” means any transfer or assignment 3 of a legal or equitable interest in property, as defined in 4 section 702.14, from a transferor to a transferee for less than 5 fair consideration, made while the transferor is receiving 6 medical assistance or within five years prior to application 7 for medical assistance by the transferor. Any such transfer 8 or assignment is presumed to be made with the intent, on the 9 part of the transferee ; transferor; or another person acting 10 on behalf of a transferor who is an actual or implied agent, 11 guardian, attorney-in-fact, or person acting as a fiduciary , 12 of enabling the transferor to obtain or maintain eligibility 13 for medical assistance or of impacting the recovery or payment 14 of a medical assistance debt . This presumption is rebuttable 15 only by clear and convincing evidence that the transferor’s 16 eligibility or potential eligibility for medical assistance or 17 the impact on the recovery or payment of a medical assistance 18 debt was no part of the transferee’s reason of the transferee; 19 transferor; or other person acting on behalf of a transferor 20 who is an actual or implied agent, guardian, attorney-in-fact, 21 or person acting as a fiduciary for making or accepting the 22 transfer or assignment. A transfer of assets includes a 23 transfer of an interest in the transferor’s home, domicile, or 24 land appertaining to such home or domicile while the transferor 25 is receiving medical assistance, unless otherwise exempt under 26 paragraph “b” . 27 Sec. 2. Section 249F.1, subsection 2, paragraph b, 28 subparagraph (6), Code 2009, is amended to read as follows: 29 (6) Transfers of assets that would, at the time of the 30 transferor’s application for medical assistance, have been 31 exempt from consideration as a resource if retained by the 32 transferor, pursuant to 42 U.S.C. § 1382b(a), as implemented 33 by regulations adopted by the secretary of the United States 34 department of health and human services , excluding the home and 35 -1- LSB 5374DP (5) 83 pf/nh 1/ 2

S.F. _____ H.F. _____ land appertaining to the home . 1 EXPLANATION 2 This bill amends the definition of “transfer of assets” 3 for the purpose of eligibility for the medical assistance 4 (Medicaid) program. The bill amends the definition to provide 5 that any transfer or assignment of a legal or equitable 6 interest in property, from a transferor to a transferee for 7 less than fair consideration, made while the transferor is 8 receiving medical assistance or within five years prior to 9 application for medical assistance by the transferor, is 10 presumed to be made with the intent, on the part of not only the 11 transferee, but also the transferor; or another person acting 12 on behalf of a transferor who is an actual or implied agent, 13 guardian, attorney-in-fact, or person acting as a fiduciary, of 14 enabling the transferor to obtain or maintain eligibility for 15 medical assistance or of impacting the recovery or payment of a 16 medical assistance debt. The presumption is then rebuttable 17 only by clear and convincing evidence that the transferor’s 18 eligibility or potential eligibility for Medicaid or the impact 19 on the recovery or payment of a medical assistance debt was no 20 part of the reason of not only the transferee, but any of the 21 other parties specified for making or accepting the transfer 22 or assignment. 23 The bill provides that a transfer of assets includes a 24 transfer of an interest in the transferor’s home, domicile, or 25 land appertaining to such home or domicile while the transferor 26 is receiving medical assistance, unless otherwise exempt. 27 The bill amends the listing of transfers that are exempt from 28 the definition to provide that a transfer of assets that would 29 have been exempt from consideration as a resource if retained 30 by the transferor pursuant to federal law does not include a 31 transfer of the home or land appertaining to the home. 32 -2- LSB 5374DP (5) 83 pf/nh 2/ 2